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J. Kumar Infraprojects FY26: A Flat Year, But Order Momentum Picks Up

J. Kumar Infraprojects ended FY26 with stable, moderated performance, and management described the year as one of consolidation. On a consolidated basis, revenue from operations grew 1% year on year to 5,723 crore in FY26 (FY25: 5,693 crore). EBITDA was largely unchanged at 823 crore (FY25: 826 crore), while PAT moderated slightly to 387 crore (FY25: 391 crore).

The same pattern played out in Q4. Revenue from operations in Q4 FY26 declined 3% year on year to 1,585 crore (Q4 FY25: 1,633 crore). EBITDA declined 5% to 224 crore and PAT declined 3% to 110 crore. Margins remained stable, with EBITDA margin at 14.1% in Q4 and 14.4% for the full year.

Management attributed the moderation to operational and timing factors that temporarily slowed execution. The emphasis through the year was on maintaining balance sheet strength and liquidity, while preparing for a stronger growth cycle supported by order inflows in the new fiscal.

What drove the revenue mix in FY26

The company’s FY26 revenue was spread across its core urban infrastructure segments. Elevated corridors, flyovers, roads and road tunnels remained the largest bucket at 29% of FY26 revenue. Water contributed 25%, while metro work contributed 29% in total, split between underground metro at 11% and elevated metro at 18%. Civil and other work contributed 12%.

Geographically, the business remained concentrated in Maharashtra, which contributed 63% of FY26 revenue. NCR was the second largest region at 19%, followed by Tamil Nadu at 11% and Gujarat at 4%. Uttar Pradesh and Karnataka were smaller contributors.

In Q4 FY26, Maharashtra accounted for 57% of revenue, with NCR at 20% and Tamil Nadu at 16%. The quarter’s segment mix showed 36% from elevated corridors, flyovers, roads and road tunnels, 21% from water, 25% from metro work in total, and 12% from civil and others.

Balance sheet and cash flow: liquidity improved, depreciation set to rise

FY26 saw a sharp improvement in operating cash generation. Cash generated from operations was 1,344 crore in FY26 compared with 489 crore in FY25. After taxes, net cash from operating activities stood at 1,128 crore. Investing cash outflow was 711 crore, and financing cash outflow was 281 crore, resulting in a net increase in cash and cash equivalents of 135 crore. Closing cash and cash equivalents rose to 203 crore.

The company continued to highlight its cash positive position. The presentation shows net debt equity ratio at (0.08) in FY26. In the conference call, management stated net debt as on March 31, 2026 stood at negative 264 crore.

Gross debt remained controlled. While long-term debt increased to 389 crore in FY26 (FY25: 264 crore), short-term debt declined to 227 crore (FY25: 432 crore), keeping gross debt at 617 crore versus 696 crore in FY25. Gross debt equity ratio improved to 0.18.

A key accounting development is the higher depreciation run-rate. Depreciation was 66 crore in Q4 FY26, above the 40 to 45 crore quarterly trend that investors were tracking earlier. Management attributed this to heavy capex over the last two years and indicated that a quarterly depreciation run-rate around 65 crore could continue.

Order book: FY27 starts strong

The main positive catalyst in management commentary was order momentum. The investor presentation reported an order book of 18,554 crore as on March 31, 2026. It also disclosed that orders awarded year-to-date in FY27 stood at 4,556 crore.

On the earnings call, management stated that the company had already booked orders in excess of 4,500 crore in the fiscal, and had an L1 position of 1,770 crore, totaling around 6,300 crore. Management also indicated that the order book had reached around 25,000 crore as of the call date.

Management guided for FY27 order intake of around 9,000 crore to 10,000 crore, and stated there are projects worth around 15,000 crore to 20,000 crore that the company expects to bid for during the year.

The company reiterated its preference for margin discipline, stating it does not intend to block execution capacity with low-margin orders.

FY27 guidance: 15% growth, stable to improving margins

Management provided explicit financial guidance for FY27. It expects revenue growth of around 15%, with revenue expected to cross 6,500 crore. It also guided for around 15% growth in the bottom line.

On profitability, management stated EBITDA margin is expected to remain around 14% to 15%, with an effort to improve towards 15% to 16% over time. PAT was indicated around 7%. Management added that the guidance is conservative and there is scope to do better, but it prefers to commit to what it can deliver.

Capex guidance for the next two years was stated at around 200 crore to 250 crore for FY27 and FY28, including ongoing project requirements and incremental annual capex.

Project readiness and execution commentary

Management commentary focused heavily on execution visibility for large ongoing projects and the timeline for newly won orders to contribute.

For new wins, management said meaningful contribution typically begins from Q2 or Q3, as the first 6 to 9 months are spent on preparatory work such as surveys, soil investigation, geology and design approvals.

On key ongoing projects, management stated that work has started and that progress is visible. For the Chennai project, management said foundation and substructure work is in line and the casting yard is fully operational with segment casting underway.

For the GMLR project, management said both tunnel boring machines have arrived at the site, with one in advanced assembly. It stated that site acceptance testing is expected around June 8 to begin drilling, and the second machine is expected to follow with a 1.5 month gap. Management also stated that tree cutting and transplantation permissions have been received and completed and that shaft excavation is done.

On cost risks, management stated that all contracts are covered under price variation and escalation clauses, including key components such as steel, cement, POL and labour. It explained that escalation is processed through the regular monthly running bill mechanism.

Key takeaways

FY26 did not deliver growth, but it preserved profitability and strengthened cash generation. The narrative is now shifting to FY27 execution, supported by a stronger order start and management guidance for 15% growth.

For investors tracking the next phase, the key markers will be whether execution accelerates from Q2 onwards as guided, whether margins remain stable while depreciation rises, and whether the company converts its stated bid pipeline into timely order inflows without compromising on pricing discipline.